ᐅ Preliminary Planning for House Construction – Realistic Assessment of Feasibility

Created on: 7 Aug 2018 22:48
J
jackdaniels
J
jackdaniels
7 Aug 2018 22:48
Hello everyone,

My girlfriend and I are currently in the preliminary planning stages of building a house. We have already decided to go with a prefabricated house and have found one that we like. It is the Point 173 from Danwood. The price listed online is €188,300 (about $188,300), but we understand that this is probably the price for the most basic configuration. Therefore, we have roughly estimated a budget of €350,000 to €400,000 (about $350,000 to $400,000).

We already have a plot of land, just under 1000m² (approximately 10,700 sq ft), equity of around €30,000 (about $30,000), a building savings contract (Bausparvertrag) with €12,000 (about $12,000), and the option to take a loan of another €15,000 (about $15,000) from a second building savings contract.

My net income is approximately €3,900 (about $3,900), and my girlfriend’s is about €1,550 (about $1,550).

Now to the questions:
1. Is the house price realistic?
2. Is repaying the loan within a maximum of 20 years realistic?
H
HilfeHilfe
8 Aug 2018 06:35
1. I think that 400k should be enough.
2. It depends. If you include an appropriate repayment plan. Have you already requested quotes just to get an idea of the financial burden?
B
Bieber0815
8 Aug 2018 08:33
1. You can definitely build a very nice house for 350,000 to 400,000 euros plus the cost of the land. No question about it...

2. In my opinion, the monthly payment will need to be between 1,500 and 2,000 euros if you want to have it paid off in 20 years. Whether that is feasible for you depends on your own circumstances (income development, rise in living costs, discipline, etc.).
Y
ypg
8 Aug 2018 08:50
Well budgeted. That will also cover additional construction costs as well as exterior landscaping.

However, you need to check how income is affected during parental leave for children or parents!
Y
ypg
8 Aug 2018 08:52
190,000 house
15,000 foundation slab
5,000 house delivery
40,000 additional construction costs
30,000 special features
20,000 contingency
20,000 landscaping
5,000–10,000 carport/garage
J
jackdaniels
8 Aug 2018 14:41
First of all, thank you for the feedback.

We are somewhat relieved that you all consider this to be quite realistic. Our next step will be to approach Danwood directly to request a more detailed price, especially regarding our special requests.

Regarding the demolition, €1500 (about $1600) seems more feasible than €2000 (about $2200), especially if my partner goes on parental leave. We want to plan so that, in the worst case, I can cover all ongoing costs alone with my salary, since I am a civil servant and therefore virtually un-dismissable, with a secure and gradually increasing income. However, this is something we will need to discuss in more detail. Of course, besides the house, we want to enjoy our life somewhat and offer our future children a nice childhood, which also requires some money 😉

One more question: Does the plot of land count as equity?